The 5 Best Bitcoin Stocks And Crypto Plays To Buy And Watch

The price of Bitcoin has tumbled over the past month, driven lower in recent days by inflation concerns and the collapse of a large stablecoin. 

A number of Bitcoin stocks — or companies that have business tied to the cryptocurrency — have followed. Given the on-a-whim price swings in the crypto world, finding the best stocks out of that bunch can be difficult.

The price of Bitcoin currently stands at around $28,000, well below the $40,000 support level. That price is down from around $57,000 at the start of December and a record $68,990.90 in early November. 

Bitcoin's gyrations have arrived as traders try to figure out where inflation and the economy are headed, as Russia's invasion of Ukraine tests the cryptocurrency's different investment narratives and the Federal Reserve raises its key interest rate to head off rising consumer prices.

Bitcoin has been seen by some as a hedge against inflation. But it doesn't always act that way. The price of Bitcoin fell at the end of last year as more traditional investors dumped what they considered a volatile "risk asset" in a time of rising prices and economic uncertainty.

"The institutional investor is paying close attention to Bitcoin as many who got in last year are now losing money on their investment," Edward Moya, senior market analyst at OANDA, said in emailed commentary on Monday. ​

As Forbes explained, other stablecoins, like Tether, are purportedly backed by things like dollars or debt. 

Terra, however, is an algorithmic stablecoin, with its value determined by its relationship with another digital asset called Luna. Terra's value is supposed to be held steady by recalibrations in the supplies of both those coins. And it is supposed to be worth $1 of Luna, the article said.

But as pressure built on the crypto ecosystem overall, Terra's value began to drop below $1. As it became further detached from its dollar peg, anxieties among traders, and the resulting sell-off, intensified. 

A reserve system — made up of Bitcoins — created to prop up Terra and keep its value aligned with the dollar had been exhausted, Coindesk said, citing data from Glassnode.

BlackRock (BLK) CEO Larry Fink in March said the investment firm was "studying" digital currencies, stablecoins and the technology behind them to "understand how they can help us serve our clients."

President Biden has also announced an executive order geared toward "responsible development" of digital assets like cryptocurrencies. 

The order directed regulators to "develop policy recommendations to address the implications of" the digital-asset market. Bitcoin's price jumped on the news.

Major corporations are taking interest. More exchange traded funds tied to Bitcoin futures and companies — the closest things to a direct Bitcoin ETF — have also debuted recently. Grayscale has filed to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. 

But the SEC has concerns, and has pushed back its decision on the matter. The agency has until July 6 to make a decision. 

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